Insights
The 4 Types Of Payment Ecosystems
At the end of February, The Paypers published a report:
PSP ecosystem explained and global mapping of key players.
The mapping starts with distinguishing 4 principal sections of payment providers(Payment Service Providers, Payout Solution Providers, PSP Enablers, and PSPConnectors) and proceeds with a complete summary of the industry.
All the PSPs in this study have been analyzed based on the variables presentedin the report. The variables are classified into categories and based on aselection of variables (Geographical presence,Omnichannel/Pure e-commercePaymentcapabilities). The research covers PSPs, Payout Solution Providers (which can bePSPs), PSP enablers, and PSP connectors.
Today we want to share an interesting point of views from the paper.
1.Payment Service Providers
They offer entities of merchants for accepting electronic payments through avariety of payment methods through their partnerships with acquiring banks.
While PSPs began implementing connections to process the payments in theInternet channel, they allow a full variety of further financial assistance totheir clients. A PSP is an aggregator of connectivity and financial progress.
2.Payout Solution Providers
Most often these are companies that offer mass payments solutions. A similarpayment infrastructure is a preferred method of integration. In this way, abusiness can ensure security in the customers’ payment process.
3.PSP enablers
These are payment services that combine into different components. The main goalis to optimize several processes. The services provided by PSP enablers varyfrom offering access to card acquirers and Alternative Payment Models (APMs), toprocessing and collection services for APMs, and a wide range of othervalue-added services.
4.PSP connectors
PSP connectors are a new series of technology solutions vendors, offeringmerchants the ability to connect (through an API) with multiple PSPs. Theseconnectors optimize the payment process. Merchants thus optimize and save costs.
The Payment Service Provider segment in the payments value chain is growing, andthe increase process can be carefully defined in two important words: dynamismand fragmentation. Understanding how the business currently includes hundreds ofPSPs, staying on top of the game is pretty challenging, and it will ultimatelyneed new strategies.
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Teo Iliev
SOLUTION ARCHITECT @ QAIWARE
Teo has extensive experience, with in-depth knowledge of Payment Projects. With a strong development background, industry knowledge and business driven approach, at Qaiware heis focusing on designing cutting edge technological solutions for the payments industry
